Does the Gokhale Method make representations about the past financial performance of franchised outlets?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to Esther Gokhale, Chief Executive Officer, Gokhale Method Institute, 3790 El Camino Real #1033, Palo Alto, CA 94306, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 29–30)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method does not make any representations about the past financial performance of company-owned or franchised outlets. The FDD states that Gokhale Method also does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing outlet, Gokhale Method may provide the actual records of that outlet. The Franchise Disclosure Document advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Esther Gokhale, Chief Executive Officer, Gokhale Method Institute, as well as the Federal Trade Commission, and the appropriate state regulatory agencies.
This policy is typical in franchising. Franchisees should be wary of any financial performance representations made outside of Item 19 of the FDD and should report any unauthorized claims to the franchisor and regulatory bodies.